Monster Beverage's Trading Volume Drops 70% Despite Strong EPS Growth and Global Expansion

On June 23, 2025, Monster Beverage (MNST) saw a trading volume of $231 million, marking a 70.09% decrease from the previous day. The stock price of Monster Beverage rose by 0.19%.

Monster Beverage has navigated through a tumultuous period since 2021, facing macroeconomic headwinds, currency fluctuations, and internal operational challenges. Despite these obstacles, the company has maintained its earnings growth trajectory and expanded its global footprint through strategic partnerships. These alliances, along with innovation and capital discipline, have been key drivers in sustaining shareholder returns, even during periods of market underperformance.

Monster's earnings per share (EPS) figures from 2021 to 2025 demonstrate resilience. After a 13% drop in 2022, EPS rebounded by 32% in 2023 before dipping slightly in 2024. The trailing twelve-month (TTM) EPS for 2025 stands at $1.52, a 7.1% year-over-year increase. This growth outpaces peers, highlighting Monster's ability to offset domestic saturation with overseas expansion.

Strategic partnerships have been instrumental in unlocking new markets and mitigating risks for Monster. The company's decades-long partnership with Coca-Cola has been a cornerstone, leveraging Coca-Cola's global distribution network to penetrate markets like the Philippines. This collaboration includes brand exchanges, allowing Monster to focus on its core energy drink business, which now accounts for 91% of sales. Additionally, the alliance with Starbucks has amplified Monster's premium positioning, with co-developed products contributing to an 8.5% sales boost in key markets.

Monster's capital allocation strategy has been a key differentiator for shareholders. The company has returned $201.6 million to shareholders in buybacks, reducing diluted shares by 20% over nine years. As of 2025, $682.8 million remains under existing programs, signaling ongoing confidence in its stock's undervaluation. The 2-for-1 stock split in March 2023 lowered the share price from $64 to approximately $32, making it more accessible to retail investors and boosting liquidity. Monster's balance sheet is pristine, with $2 billion in cash and $1.5 billion in trailing twelve-month profits, providing a buffer against risks and fueling opportunistic acquisitions.

Monster Beverage faces several challenges, including struggles in its alcohol segment, currency volatility, and energy drink market saturation. The CANarchy acquisition has underperformed, with sales in its Alcohol Brands segment dropping 38.1% year-over-year in early 2025. Management is addressing this by refining distribution and launching new flavors. Currency effects have also reduced reported net sales, but Monster is mitigating this via local production and hedging strategies. To counter market saturation, Monster is expanding into adjacent categories like water and wellness drinks, which now contribute 9% of sales.

Monster Beverage's stock trades at a 6–8x forward price-to-sales ratio, below its historical average, reflecting investor concerns over near-term volatility. However, the company's fortress balance sheet, global expansion momentum, and disciplined capital returns make it a compelling long-term hold. For investors willing to endure short-term turbulence, Monster Beverage offers a rare blend of growth potential and defensive financial strength.